Sebi cuts listing time to T+3 working days for debt securities issue

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Sebi on Thursday decided to reduce the timeline for listing of public issue of debt securities to three working days from six days at present, to facilitate faster access to funds.

This new timeline will be optional for the first year and mandatory thereafter.

"It has been decided to reduce the listing timeline in case of public issue of debt securities and NCRPS to T+3 working days from the existing timeline of T+6 working days," the Securities and Exchange Board of India (Sebi) said in a circular.

The move would help in enabling faster access to funds for issuers.

Also, the move would align the listing timeline in case of the public issue of debt securities and non-convertible redeemable preference shares (NCRPS) with that of non-convertible securities issued on a private placement basis and specified securities.

Further, to ensure ease of compliance for issuers, the listing timeline of T+3 working days will be applicable on a voluntary basis to public issues of debt securities and NCRPS opening on or after November 1, 2024, and on a mandatory basis from November 1, 2025.

Earlier this week, Sebi streamlined the application process for public issues of debt securities by asking individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds.

Further, investors will continue to have the choice of availing other methods like applying through Self-Certified Syndicate Banks or the stock exchange platform for making applications.

Before that, Sebi amended rules to reduce the period for seeking public comments on the draft offer documents from 7 working days to one day for issuers whose specified securities are already listed and five days for other issuers.

Also, the minimum subscription period has been cut from 3 to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days.